Republican lawmakers in the U.S. Senate have unveiled significant cryptocurrency tax reforms within the comprehensive ‘One Big Beautiful Bill’. These proposals aim to clarify tax burdens and foster broader cryptocurrency adoption.
The cornerstone provision incorporates a de minimis capital gains exemption specifically for small cryptocurrency transactions, effectively eliminating tax reporting requirements below a certain threshold. Industry advocates believe this could significantly encourage everyday crypto use for minor payments.
Further simplification comes via proposed rules for blockchain staking rewards. Under the bill, these rewards would not incur income tax until they are sold, alleviating a major reporting pain point for individual cryptocurrency holders.
For businesses holding cryptocurrencies, the bill advocates permitting corporations to use mark-to-market accounting. This would allow firms to recognize unrealized gains and losses annually, potentially streamlining their financial reporting.
Key sponsors, including prominent crypto advocate Senator Cynthia Lummis, are actively championing these provisions. However, their successful inclusion in the final legislative package currently remains uncertain and subject to ongoing Congressional deliberation.
Industry observers broadly characterize these proposed reforms as potential game-changers. They represent a concerted effort to bring much-needed clarity and potential relief to the U.S. cryptocurrency tax landscape.